Your approach to buying a car can say a lot about your commitment to building financial security, says former CNBC host, best-selling author and award-winning financial advisor Suze Orman, in a recent blog post. And, she writes, "from what I hear and see these days, plenty of you are being down-right dumb when it comes to financing a car purchase."
That's because, unless you buy a car outright or it was gifted to you, the time you're planning to take to pay it off is probably too long.
Data from major credit bureau Experian shows that, in 2016, the average auto loan lasted 68 months, or more than 5 years. The average loan amount: Over $30,000, more than the typical millennial makes in a year. That means the average monthly payment is $503, a considerable, even shocking, amount if you're paying student loans and juggling the other essential high costs of living.
"Are you kidding me?" writes Orman.